CRPC Exam, Most Recent Actual Complete Real
Exam Questions And Correct Answers (Verified Answers)
Already Graded A+ / Newest Exam / Just Released!!
How are gold and silver ETFs taxed - ANSWER-- not as
securities; they are taxed as collectibles, which means that
long-term cap gains are taxed at a max of 28%
How are currency fund etfs taxed - ANSWER-- ordinary income
tax rate
Identify the three broad objectives a mutual fund can have -
ANSWER-1) capital appreciation (growth) 2) current income
3) capital preservation
What is the required deadline for the commencement of
distributions from qualified plans, IRAs, SEPs, TSAs, and other
retirement accounts? - ANSWER- april 1 of the year following
turning 70.5
What does the tax code require in terms of minimum
distributions (RMDs) once the plan participant has attained age
70.5 - ANSWER-- the amounts in the plan must be taken over a
period of time that doesn't exceed the participants life
expectancy OR
,- amounts in the plan must be taken over a period of time that
doesn't exceed the joint life expectancy of the plan participant
and the spouse using the joint and last survivor table if
spouse is 11 or more years younger
What are the two alternative payment options generally
available to retired and terminated participants in qualified
retirement plans? - ANSWER-1. lump sum distribution
2. Series of periodic payments (annuity, or series of
installments)
What is the negative tax aspect of taking a lump-sum
distribution? - ANSWER--
entire sum I recognized as taxable income
in that year.
explain the tax benefit of rolling over a lump-sum distribution.
what is the negative tax aspect of this option? - ANSWER--
defers taxation of the lump sum until such time as it is
distributed
- negative: may eliminate the opportunity for forward averaging
Rollovers are generally used to defer taxation of lump sum and
retain tax deferred accumulations
- explain in-direct rollover
- Describe an important negative aspect of this indirect
approach to handling a lump-sum distribution. - ANSWER--
plan participant takes receipt of a retirement plan distribution
and within period of 60 days places it into an ira
,neg: IRC requires the plan administrator withhold 20% of the
initial qualified
plan or TSA distributions
for taxes
How can the negative aspect of indirect rollover be avoided? -
ANSWER-- use a
direct
rollover
RMD calculation - ANSWER-(balance on 12/31 of the
prior year)/Life
expectancy
When does a deceased participants bene have to be determine
by - ANSWER-
September 30th of the year following the
year of death
RMD start date for inherited IRA - ANSWER-12/31 of the year
following the date
of
death
Conversion of IRA benefits into a Roth IRA may be made in one
of three ways: - ANSWER-1. 60 day rollover; accept payment
and redeposit the distributed assets within 60 days
2. trustee to trustee
, 3. Same trustee transfer- money stays within the same
institution. the individual simply sets up a roth IRA account
with the trustee holding the trad IRA. and then directs them to
move the money to the roth
Conversion of qualified plan, 403(b), or 457 governmental plan
benefits into a Roth IRA may be made in one of two ways: -
ANSWER-1. accept payment and redeposit the distributed
assets within 60 days into a roth ira 2. request a direct
transfer of an eligible rollover distribution to a roth
Identify six exceptions stated in the Internal Revenue Code
(IRC) to the tax penalty assessed against distributions taken
before age 59½? - ANSWER-1. distributions do not exceed the
amount of participants deductible med expenses for that year
2. Distribution is made to a former spouse or dependent
under a QDRO 3. distributions are made at separation from
service at age 55 or older (not applicable to IRA)
4. SEPPs
5. Plan participant dies and distribution goes to a bene, or
estate
dist is attributable to permanent Disability
What is the default distribution option for the married
participant of a defined benefit plan?
- what is required to change it - ANSWER-- automatically be
given a joint and survivor annuity as a distribution option.
- spouse must give their written consent to the change
Exam Questions And Correct Answers (Verified Answers)
Already Graded A+ / Newest Exam / Just Released!!
How are gold and silver ETFs taxed - ANSWER-- not as
securities; they are taxed as collectibles, which means that
long-term cap gains are taxed at a max of 28%
How are currency fund etfs taxed - ANSWER-- ordinary income
tax rate
Identify the three broad objectives a mutual fund can have -
ANSWER-1) capital appreciation (growth) 2) current income
3) capital preservation
What is the required deadline for the commencement of
distributions from qualified plans, IRAs, SEPs, TSAs, and other
retirement accounts? - ANSWER- april 1 of the year following
turning 70.5
What does the tax code require in terms of minimum
distributions (RMDs) once the plan participant has attained age
70.5 - ANSWER-- the amounts in the plan must be taken over a
period of time that doesn't exceed the participants life
expectancy OR
,- amounts in the plan must be taken over a period of time that
doesn't exceed the joint life expectancy of the plan participant
and the spouse using the joint and last survivor table if
spouse is 11 or more years younger
What are the two alternative payment options generally
available to retired and terminated participants in qualified
retirement plans? - ANSWER-1. lump sum distribution
2. Series of periodic payments (annuity, or series of
installments)
What is the negative tax aspect of taking a lump-sum
distribution? - ANSWER--
entire sum I recognized as taxable income
in that year.
explain the tax benefit of rolling over a lump-sum distribution.
what is the negative tax aspect of this option? - ANSWER--
defers taxation of the lump sum until such time as it is
distributed
- negative: may eliminate the opportunity for forward averaging
Rollovers are generally used to defer taxation of lump sum and
retain tax deferred accumulations
- explain in-direct rollover
- Describe an important negative aspect of this indirect
approach to handling a lump-sum distribution. - ANSWER--
plan participant takes receipt of a retirement plan distribution
and within period of 60 days places it into an ira
,neg: IRC requires the plan administrator withhold 20% of the
initial qualified
plan or TSA distributions
for taxes
How can the negative aspect of indirect rollover be avoided? -
ANSWER-- use a
direct
rollover
RMD calculation - ANSWER-(balance on 12/31 of the
prior year)/Life
expectancy
When does a deceased participants bene have to be determine
by - ANSWER-
September 30th of the year following the
year of death
RMD start date for inherited IRA - ANSWER-12/31 of the year
following the date
of
death
Conversion of IRA benefits into a Roth IRA may be made in one
of three ways: - ANSWER-1. 60 day rollover; accept payment
and redeposit the distributed assets within 60 days
2. trustee to trustee
, 3. Same trustee transfer- money stays within the same
institution. the individual simply sets up a roth IRA account
with the trustee holding the trad IRA. and then directs them to
move the money to the roth
Conversion of qualified plan, 403(b), or 457 governmental plan
benefits into a Roth IRA may be made in one of two ways: -
ANSWER-1. accept payment and redeposit the distributed
assets within 60 days into a roth ira 2. request a direct
transfer of an eligible rollover distribution to a roth
Identify six exceptions stated in the Internal Revenue Code
(IRC) to the tax penalty assessed against distributions taken
before age 59½? - ANSWER-1. distributions do not exceed the
amount of participants deductible med expenses for that year
2. Distribution is made to a former spouse or dependent
under a QDRO 3. distributions are made at separation from
service at age 55 or older (not applicable to IRA)
4. SEPPs
5. Plan participant dies and distribution goes to a bene, or
estate
dist is attributable to permanent Disability
What is the default distribution option for the married
participant of a defined benefit plan?
- what is required to change it - ANSWER-- automatically be
given a joint and survivor annuity as a distribution option.
- spouse must give their written consent to the change
